Distribution Solutions Group

DSGR · NASDAQ

$35.04−$0.01 (−0.03%)TodayMarket closed · Oct 20, 7:19 PM ET

Prev close $35.05

DSGR analyst rating

BuyConsensus of 2 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy1
Hold1
Underperform0
Sell0

12-month price target · 4 analysts

Average $35.70 (+1.9% upside)

Low: $35.35
Now: $35.04
High: $36.75

Upgrades and downgrades

The latest rating actions, newest first

DSGR analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Barrington Research	Jul 17, 2026	Downgrade	Outperform → Market Perform	$33.00 → $35.00	59%
Barrington Research	May 21, 2026	Maintains	Outperform	$35.00 → $33.00	59%
Stephens & Co.	May 5, 2026	Maintains	Overweight	$36.00	72%
Barrington Research	Mar 16, 2026	Maintains	Outperform	$35.00	59%
Barrington Research	Mar 10, 2026	Maintains	Outperform	$41.00 → $35.00	59%
Barrington Research	Mar 2, 2026	Maintains	Outperform	$41.00	59%
Barrington Research	Nov 5, 2025	Maintains	Outperform	$41.00	59%

The case for and against

Updated Oct 14, 2026

Bull case

Distribution Solns Group is supported by clear top-line momentum, with Q1/26 revenue rising 3.8% year over year to $496.0 million and organic growth improving to 3.6% from flat in Q4/25, while sequential organic average daily sales advanced 3.7%. TestEquity, the largest revenue contributor, grew about 8% year over year to $204 million, and the March 9th acquisition in Canada added further growth, reinforcing management’s ability to combine organic execution with selective expansion. Although adjusted EBITDA margin declined to 7.6% in Q1/26, the company’s raised 2026 revenue estimate of $2.055 billion and 2027 revenue estimate of $2.133 billion reflect confidence that continued investment can support durable long-term growth and operational improvement.

Bear case

Distribution Solns Group is facing a weaker fundamental backdrop as Q1/26 adjusted EBITDA margin fell 140 bps year over year to 7.6% and adjusted EBITDA of $37.8 million missed the $39.2 million estimate, signaling that recent people-related investments are not yet translating into operating leverage. The business also remains exposed to structurally important risks from inventory carrying costs, supply chain disruptions, competitive pressure, and M&A execution, any of which could further weigh on profitability. With substantial debt, low liquidity, and macro sensitivity adding downside risk, the stock’s negative outlook is anchored in margin pressure and a still-fragile earnings profile.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.